24 August 2023: Wealth Product Ideas

FCN Idea – Palantir

Palantir (PLTR) reported Q2 earnings with double-digit growth and highlighted the potential of their latest AI offering, the Artificial Intelligence Platform (AIP), to significantly expand the company’s total addressable market and create long-term value.
In Q2, Palantir’s revenues grew by 12.8% YoY to reach US$533.32 million, driven by a 10% YoY increase in commercial revenues and a 15% YoY increase in government revenues.
The company achieved positive cash flow and recorded GAAP profitability for the third consecutive quarter, underscoring the ongoing growth story of Palantir.
Palantir witnessed a 38% YoY increase in its customer count, reaching 421 customers in Q2. The management successfully closed 66 deals worth at least US$1 million.
The overall economic improvement could potentially benefit Palantir, leading to strong commercial spending headwinds and aggressive growth in new customers.
Palantir’s entrance into the generative AI field through the launch of AIP in Q2 is expected to be a game changer for the company, enabling it to attract new customers at an even more aggressive rate. The generative AI industry itself is projected to surpass US$1 trillion in value in the coming years.
Palantir’s recent authorization of a buyback program of up to US$1 billion further reinforces confidence in the company’s future prospects.

Note: Pricing provided is indicative only. For updated pricing, please contact us directly.

Payout Scenarios:

Investors receive corresponding interest payments every month and;

KO Early Redemption: Principal + KO returns (KO event occurs only when the closing price of all underlying securities is higher than the knock-out price)
Maturity Redemption: If no KO event occurs, the payout will be:
1. If the final price of all underlying is higher than or equal to the strike price, investors will receive 100% cash return on their principal, along with the final interest.
2. If the final price of one or more underlying is lower than the strike price, investors will receive 100% of their principal in the form of shares of the worst-performing stock and will also receive the final interest.

(Source: Bloomberg)